24 reviewed questions with answers and explanations.
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If the arithmetic mean of 2, 3, 5, 8, Z, 10 and 12 is 7, what is the value of Z?
B: 9
Seven observations with mean 7 must sum to 49. The six known values sum to 40, leaving Z = 49 - 40 = 9.
AI-reviewed · source checkedGiven that Qd=15-2P and Qs=5+3P, determine the equilibrium price.
C: N2.00
At equilibrium, 15 - 2P = 5 + 3P. Thus 10 = 5P and P = N2; both quantities then equal 11.
AI-reviewed · source checkedScale of preference is referred to as the
D: consumer wants in order of priority
A scale of preference orders wants from most to least important. It helps a consumer choose which wants to satisfy first when resources are limited.
AI-reviewed · source checkedOne of the basic assumptions of monopoly is
B: the ability to either control price or output
A monopolist faces the market demand curve and can choose a price or an output level. Demand determines the corresponding quantity or price, so both cannot be chosen independently.
AI-reviewed · source checkedA major advantage of a public limited liability company over a private limited liability company is
C: easy transferability of shares
Public-company shares are generally more readily transferable than shares in a private company, which commonly restricts transfers. Limited liability and separate identity are shared features.
AI-reviewed · source checkedThe main activity in the upstream oil sector in Nigeria is
C: extraction of crude oil
Extracting crude oil is an upstream activity. Refining and distribution of petroleum products belong to later stages in the petroleum chain.
AI-reviewed · source checkedThe natural growth of population is calculated as
D: birth rate - death rate
Natural population growth excludes migration and equals births minus deaths. With rates measured on the same population base, it is birth rate minus death rate.
AI-reviewed · source checkedIf the demand for palm oil is for the purpose of soap production and cooking, the demand is said to be
C: composite
Composite demand means one commodity is wanted for several different uses. Palm oil used both for soap making and cooking illustrates this multiple-use demand.
AI-reviewed · source checkedThe reward for capital as a factor of production is
A: interest
Capital, such as equipment used in production, receives interest in the standard factor-reward classification. Profit is the return associated with entrepreneurship.
AI-reviewed · source checkedThe type of inflation that emanates from excess demand over supply is
C: demand-pull inflation
Demand-pull inflation arises when aggregate spending exceeds what the economy can supply at existing prices. Excess demand pushes the general price level upward.
AI-reviewed · source checkedWhich of the following problems is associated with national income measurement?
B: Inflation and deflation
Inflation and deflation change money values even if real production does not change. National-income comparisons must therefore adjust for price changes to measure real output consistently.
AI-reviewed · source checkedFreedom of consumption and production are characteristics of
C: capitalism
Capitalism emphasizes private choice in production and consumption, operating through markets. This freedom is a characteristic of the model, though actual economies also impose rules.
AI-reviewed · source checkedCost of raw materials in production is an example of
B: variable cost
Raw materials are used up as output is produced. Their total cost normally changes with production volume, making them variable costs.
AI-reviewed · source checkedThe volume of output in an economy is determined by
D: efficiency in the use of factors of production
More efficient use of labour, capital and other inputs can produce greater output from the same resources. Productive efficiency therefore directly influences the volume produced.
AI-reviewed · source checkedGiven Qd = 30 - 3P, Qs = 9P – 18. Determine the equilibrium quantity
A: 18
Set 30 - 3P = 9P - 18, giving P = 4. Substituting into either equation gives equilibrium quantity 30 - 12 = 18.
AI-reviewed · source checkedOne of the important qualities that money must possess is
C: homogeneity
Homogeneity means units of the same denomination are uniform and interchangeable. People can accept one unit as equivalent to another when making payments.
AI-reviewed · source checkedA graph has price on the vertical axis and quantity on the horizontal axis. An arrow shows movement along one unchanged upward-sloping supply curve, from a lower price and quantity to a higher price and quantity. This represents
C: an increase in quantity supplied
A move upward along the same supply curve means more is supplied in response to a higher price. It is an increase in quantity supplied, not a shift of supply.
AI-reviewed · source checkedIn a two-sector circular-flow diagram, households supply productive services to business firms, and firms supply goods and services to households. Arrow M goes from households to firms, opposite the goods-and-services flow. M indicates
A: payments made for goods and services
Households pay firms for the goods and services they buy. This money flow travels in the opposite direction to the goods and services delivered by firms.
AI-reviewed · source checkedOne of the functions of money deposit banks in economic development is
B: the provision of credit facilities
Deposit money banks channel funds to households and firms through credit facilities. This financing supports investment and production; currency issuance and monetary policy belong to the central bank.
AI-reviewed · source checkedOne of the arguments against the practice of monopoly is
C: exploitation
A monopolist may use market power to charge higher prices and restrict output. The possibility of exploiting consumers is therefore an argument against monopoly.
AI-reviewed · source checkedThe main reason why countries engaged in international trade is the
C: difference in their endowment of economic resources
Countries have different resources and production opportunities. These differences create relative cost advantages, allowing countries to gain by specializing and exchanging products.
AI-reviewed · source checkedCups of milk | Total utility | Marginal utility 1 | 18 | 18 2 | 24 | 6 3 | 29 | 5 4 | X | 3 5 | 34 | Z 6 | 35 | 1 7 | 35 | 0 What is X?
A: 32
Total utility after four cups equals utility after three cups plus the fourth cup's marginal utility. Thus X = 29 + 3 = 32 units of utility.
AI-reviewed · source checkedQuantity consumed | Total utility | Marginal utility 0 | 0 | -- 1 | 10 | 10 2 | 15 | 5 3 | 17 | 2 4 | 18 | 1 5 | 18 | 0 What can be inferred?
C: diminishing marginal utility
The extra satisfaction from successive units falls from 10 to 5, 2, 1 and then 0. This pattern is diminishing marginal utility, even though total utility initially rises.
AI-reviewed · source checkedThe cost-saving advantages which a large firm can achieve on its own is called
A: internal economies of scale
Internal economies of scale are cost advantages arising from expansion within the firm itself. External economies instead arise from developments outside an individual firm.
AI-reviewed · source checked